Methodology

The Kaiser Family Foundation/Health Research and Educational Trust 2005 Annual Employer Health Benefits Survey (Kaiser/HRET) reports findings from a telephone survey of 2,013 randomly selected public and private employers. Firms range in size from small enterprises with a minimum of three workers to corporations with more than 300,000 employees. The Kaiser/HRET Employer Health Benefits Survey is based on previous surveys sponsored by the Health Insurance Association of America from 1986–1991 and Bearing Point (KPMG at the time of the surveys) from 1991–1998. Findings in this report draw on the 1999–2005 Kaiser/HRET Survey of Employer-Sponsored Health Benefits, the 1993, 1996, and 1998 KPMG Surveys of Employer Sponsored Health Benefits, and the 1988, 1989 and 1990 studies conducted by HIAA. Researchers at Health Research and Educational Trust and the Kaiser Family Foundation designed and analyzed the survey. National Research LLC conducted the fieldwork between January and May 2005. In 2005 our overall response rate is 48%, which includes firms that offer and do not offer health benefits. Among firms that offer health benefits, the survey’s response rate is 51%.

From previous years’ experience, we have learned that firms that decline to participate in the study are more likely not to offer health coverage. Therefore, we asked one question to all firms in the study with which we made phone contact where the firm declined to participate. The question was, “Does your company offer or contribute to a health insurance program as a benefit to your employees?” A total of 2,995 firms responded to this question (including 2,013 who responded to the full survey and 982 who responded to this one question). Their responses are included in our estimates of the percentage of firms offering health coverage.

The response rate for this question was 72%. Since firms are selected randomly, it is possible to extrapolate from the sample to national, regional, industry, and firm size estimates using statistical weights. In calculating weights, we first determined the basic weight, then applied a nonresponse adjustment, and finally applied a post-stratification adjustment. We used the Statistics of the U.S. Census Bureau as the basis for the stratification and the post stratification adjustment for firms in the private sector, and we used the Census of U.S. Governments as the basis for post stratification for public sector firms. All statistical tests are performed at p<.05 except where otherwise noted.

For more methodology information, please visit our Survey Design and Methods Section.

Sponsors

The Kaiser Family Foundation, based in Menlo Park, California, is a nonprofit, private operating foundation dedicated to providing information and analysis on health care issues to policymakers, the media, the health care community, and the general public. The Foundation is not associated with Kaiser Permanente or Kaiser Industries.

The Health Research and Educational Trust is a private, not-for-profit organization involved in research, education, and demonstration programs addressing health management and policy issues. Founded in 1944, HRET collaborates with health care, government, academic, business, and community organizations across the United States to conduct research and disseminate findings that help shape the future of health care.